West Palm Beach Real Estate Info by Nick the Appraiser

A guide to a stress free home appraisal, for homeowers.

Buyers and Sellers in need will normally experience high stress levels when they really want or need a deal to close. A residential home appraisal is needed before a federally backed mortgage can be approved for the loan on the house. The property, condo unit or townhouse must be appraised by a certified (or licensed) appraiser* who is competent of completing the task. *(it can also be done by a registered trainee or apprentice working under the supervision of a certified or licensed appraiser)

Here are some thoughts for consumers, in order to help any undue stress to homeowners that are selling or refinancing. We hope that you will understand more of the things you can expect from your appraiser that comes to do the inspection/viewing of your home. It is smart and helpful to have this needed information available as preparation for the appraiser when they come to view/inspect the property.

SOME PREPARATION ON YOUR PART AS A HOMEOWNER:

• A home appraisal is normally ordered once your mortgage broker or bank has your completed application and paperwork. Before they can submit the loan to the bank loaning you the money, a home appraisal is needed.
• Be ready for a phone call to set the appointment once your broker or bank has all your documents. Be sure to answer calls from unknown numbers to avoid phone tag and delays. Making your home presentable may be a good idea at this time.
• Any upgrades/renovations since you moved into the house can be typed onto a ‘brag sheet’. You can decide whether to type them in order of importance from major renovations and remodeling first OR by date. I prefer to see the time line and then I highlight the major repairs or renovations. Computer printouts are preferred over handwritten notes. Your brag sheet will allow the appraiser to take or make more notes when viewing the property.
• If is a single family home or a townhouse, a copy of the survey of the property is helpful (if it’s available).
• Recent inspection reports or other reports that may indicate improvements to the property. (termite reports, etc)
• If you had a recent home appraisal that was done on the property within the past few years, make it available to the appraiser.
• Permits are a big deal if you have made any major renovation or additions. Copies of permits are best. This allows the appraiser to focus on the property while they are on site and review the permits at a later time.
• Copies of tax bills, title policy (with legal description of the property) are helpful in counties where records are not that great. Also is a bonus on new construction and may help the apprasier complete the assignment faster.
• If you live in a community that has a Condo or Home owner’s association, provide phone numbers for that association.
• Information of dues to any Homeowners Associations or Maintenance Companies (ex. 440 per Quarter, $180 / month) and any special assessment amounts that are expected will help also.
• Be sure that proper payment of the appraisal has been done or is available at the time of viewing the property. A bounced check will most likely delay delivery of the report to your mortgage broker or banker.
• All rooms in the home/condo/townhouse, need to be accessible, including bedrooms, bathrooms and areas of the home. Normally, the attic is normally not inspected in Florida, unless its an FHA loan. Please note that if a room that is locked and will require a second trip, you normally will have to pay another trip fee of anywhere from $75 - $100 and your report will be delayed.
• Conplete any maintenance or repairs. Although some minor details may not seem like much, your home will give off an impression of lack of maintenance. Broken windows, runny toilets, leaking sinks are not the most desired things for your appraiser to see during the inspection time. Clean the place up, as you would when you go on a job interview or a date!

INSPECTION (expectations):

• Your appraiser should be on time, but prior appointments, traffic or other delays may mean your appraiser is running a little late. Wait as long as you can so you can avoid a rescheduling (and possible additional fee if they have not called you).
• Your appraiser will be taking lots of photos, and may just knock on the door to let you know they are going to measure the outside of the house. This is a good time to let them know if you have a dog and tie him/her to a tree or make other arrangements. If you own a condo or townhouse, then invite them in and allow them to start taking notes and measuring, to get a feel for the unit.
• Once the exterior of the house or the inside of the condo is measured, you will be ready for the basic questions about your unit and the complex or association dues and other things related to your unit/home and the history of remodeling, etc.
• Please note that the appraiser will be taking photographs of the inside of your home, including bathrooms and bedrooms. So don’t be surprised when this happens, as its normal procedure. The bank wants to see the interior of your home and the appraiser wants to document things for liability purposes.
• If you have prepared any information is should be given to your appraiser at this time, to ensure an accurate home appraisal.
• Offer the appraiser your phone number, in case the appraiser needs to ask you any questions that may come up later.

BE PATIENT & WAIT:

• Although most assignment are completed within 48 hours after the inspection, sometimes there are delays for unkown reasons. Any difficulties in the report or gathering and confirming of data may delay the final re port aday or so. Please don’t keep calling the mortgage broker, as they will call the appraiser who is trying to focus on your file and report.
• From experience, many appraisals are ordered towards a little late and the more you call your broker to inquire, the more they will call the appraiser and the harder it is to work within this initial 48-72 hour time frame. Sometimes more research and verification, an extra drive to photograph and see other sales will get you a higher value.
• Your appraiser cannot tell you the value of the house, give you a range of the value OR discuss any other matters of the homes perceived value. Appraisers are bound to confidentiality by USPAP law, to discuss details of the assignment with only the bank or mortgage broker. Plus, the value amount is not known until the report is completed with many variables in play.
• This is a common misconception, but you MUST request your copy of the report from your mortgage broker. The appraiser cannot send you the report. Again, USPAP law states that appraisers can only deliver the report to the client (lender) not the borrower (homeowner or seller).

A real estate appraisal considers many different factors and details of other sales in your area, so a value is not known just from inspecting the property. So don’t ask at the inspection, because even IF they knew, legally they can’t tell you anything about value! Comparables must be viewed, data of nearby sales must also be confirmed.. so dont ask!

Remember, the client is the person or company that orders the real estate appraisal. The borrower (or buyer) pays for the real estate appraisal, but the report can only be delivered to the client, who is the lender/broker. The borrower can request the report from the lender / broker.

USPAP* is written, published, updated and ammened by the Appraisal standards board (ASB). *“USPAP represents the generally accepted and recognized standards of appraisal practice in the United States.”

Appraisers must comply with USPAP’s rules and guidelines regarding reporting, record keeping, confidentiality, ethics, and other standards.. The preamble to USPAP covers these guidelines.

Consumer & Brokers: Advisory Opinions are not a part of USPAP, but are to illustrate examples of how to apply USPAP to certain conditions or sample situations. Here are two samples on: (for homeowners)Inspection of the subject property (AO2), (for brokers) re-assigning reports (AO26).

More information can be found at: Appraisal Foundation’s website.

Hope this helps.